Delek signs MoU to sell Phoenix to AmTrust

Yitzhak Tshuva

After cancelling the Israeli insurance company's sale to China's Fosun, an agreement has now been signed with a new buyer.

Just 24 hours after the cancellation of the sale of Phoenix to China's Fosun Group, Delek Group Ltd. (TASE: DLEKG), controlled by Yitzhak Tshuva, has announced that it has signed a non-binding memorandum of understanding (MOU) to sell the insurance company to US company AmTrust Financial Services Inc. (Nasdaq: AFSI). The US company, which is already engaged in insurance activities, will acquire at least 47.5% of Phoenix for NIS 1.8 billion.

In its notification to the Tel Aviv Stock Exchange, Delek also said that according to the MOU, in order to buy shares in the Phoenix, the US company will pay an amount equal to the multiple of 87.5% of Phoenix's equity as of December 31, 2015. Half of the amount will be paid in cash when the deal is completed, and the balance through a promissory note payable within 60 months.

Delek added that although the MOU is non-binding, it is committed to exclusivity in negotiations to sell Phoenix for 30 days.

Last September, Delek sold its 60% stake in US company Republic Insurance to AmTrust for $140 million (about NIS 540 million).

Published by Globes [online], Israel business news - www.globes-online.com - on February 18, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

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Yitzhak Tshuva
Yitzhak Tshuva
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